Gold Miners ETF

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Nowadays there is a great demand for gold and the popular Gold Miners ETF (GDX) or "Exchange Traded Fund" helps investors make the most of this gold bull market.

This past year, globally, there has been an increase in demand for ETF's in general, and the central bank has bought 200 tons of gold recently, making gold an attractive investment venue and a healthy growth in gold ETF's has been predicted for the next several months.

GDX replicates the yield and price performance of the "Arca Gold Miners Index" on the New York Stock Exchange and is considered by many to be the best gold ETF available. This Index is a provider of exposure to various publicly traded global companies that are primarily involved in mining gold and represent a small to large blend of capitalization stocks.

Gold prices have been in the news a lot this year because of the demand for gold and its upward movement. Global gold funds had performed a bit better than gold ETF's in 2008, but there was a great recovery of the Gold Miners ETF's in 2009, especially when there was a rebound in the global equity markets, the dollar depreciation, and so gold was seen as a safe-haven in which to invest again.

From December of last year, gold funds have proven to have a strong performance especially those that contain mid-cap gold stocks, and it can be said that prices have even more than doubled this year for these type of ETF's, as opposed to last year.

The Gold Miners stocks had a great earnings outlook and had a 28% appreciation from $866 per ounce last December to $1082 per ounce today. This was also probably due to the commodity price correction that was made which aided the cost.

It is interesting to note that gold also led to higher demands by investors, due to the weakness in the dollar worldwide; the dollar was down by 3.8% this year and the world's largest gold miner ETF, the "US SPDR Trust", has gone up by 45% this year.

Gold ETF's have also risen since there are now more buyers in the gold market than sellers. This trend has led to the rise in gold prices as there has also been a greater demand for retail gold jewelry.

The Gold Miners ETF is a great way to be exposed to smaller silver and gold mining stocks, since you do not have to own the individual shares, and it is expected that the price of gold and mining stocks will be peaking as massive takeovers and acquisitions continue to take place.